was applied? The natural, the only efficient remedy, and it applied itself. No fresh infusion of more unsafe money; no, just the reverse. By the breaking of the rotten banks and the disappearance of their note issues the volume of the currency contracted itself violently. There was, at the end of the process, far less money in circulation than before, but that which remained was sound money. People came to their senses. Profiting by the teachings of misfortune, they began to recognize once more that not wild speculation, not the creation of imaginary values, but honest, sturdy, frugal industry is the source of real wealth and prosperity. When the first effects of the great shock were over, when the lies and deceptions in the shape of rotten bank issues and fancy values had disappeared, when the self-acting contraction of currency and credit had done its work, business enterprise began once more to feel firm ground under its feet. Business men had less of that which called itself money, but they were sure that every dollar they did have not only called itself a dollar, but was a dollar and would remain a dollar. Upon the stability of its value they could unhesitatingly base their calculations. Thus confidence gradually returned; the gaps in the volume of the currency were presently filled, not by act of Congress creating paper issues, but by gold flowing in from abroad in obedience to the laws of trade, and notes based upon gold; business enterprise revived, and soon the country was again in the course of prosperous development. To be sure, the fancy stocks and speculative values, which had perished in the crash, did not recover, but the production of real wealth was more active than before.
Look at these historic events, and then ask yourselves: What would have been the effect if Congress had tried to relieve distress and to revive business by making the notes of the broken banks a legal-tender, or by creating an irre-
